Phu Yen province People's Committee has decided to withdraw the investment licence for a 11.4 billion USD real estate project due to insufficient financial capacity on the part of its investor.
The US Galileo Investment Group had registered to develop the 7,600ha Southern Tuy Hoa Creative City. The plan called for residential, commercial, financial, educational, high technology and tourism zones.
Two years after receiving the investment licence, however, the firm has failed to implement the project as scheduled. It has also yet to pay a deposit, which is considered as a showing of strong commitment to the project on the part of a developer, the committee said.
Provincial authorities previously asked the Government to halt a United Arab Emirates (UAE)'s project to build a large special economic zone.
The UAE-based Sama Dubai group planned initial investment capital of 250 billion USD that had the potential to double to 500 billion USD, the committee chairman Pham Dinh Cu said. However, the recent global financial crisis impacted the company's plan to implement the project, according to a statement.
The mammoth project was expected to cover 300,000ha, equal to 60 percent of the province's total area, including Tuy An and Dong Xuan districts, Song Cau town and Van Hoa plateau in Son Hoa mountainous district bordering Binh Dinh province.
The southern central province remains one of the country's 10 leading localities for foreign investment attraction. As of November 20, the province was home to 48 foreign-invested projects, worth a combined 8.13 billion USD.
Increasing efforts are being made by local authorities to create the most favourable conditions for investors, the chairman said.
To facilitate investment, Phu Yen has adopted numerous incentives for domestic and foreign investors such as corporate income tax exemption and land rental reduction.
Besides simplifying licensing procedures, provincial leaders also meet with investors once every six months to discuss difficulties in production and business.
Meanwhile, the province is encouraging domestic and foreign investors to invest in 24 key projects worth a combined 18.99 trillion VND (926.3 million USD).
This huge investment capital would contribute towards various sectors including transport, seaport, industrial zones and urban development, agriculture, seafood, processing and tourism./.
The US Galileo Investment Group had registered to develop the 7,600ha Southern Tuy Hoa Creative City. The plan called for residential, commercial, financial, educational, high technology and tourism zones.
Two years after receiving the investment licence, however, the firm has failed to implement the project as scheduled. It has also yet to pay a deposit, which is considered as a showing of strong commitment to the project on the part of a developer, the committee said.
Provincial authorities previously asked the Government to halt a United Arab Emirates (UAE)'s project to build a large special economic zone.
The UAE-based Sama Dubai group planned initial investment capital of 250 billion USD that had the potential to double to 500 billion USD, the committee chairman Pham Dinh Cu said. However, the recent global financial crisis impacted the company's plan to implement the project, according to a statement.
The mammoth project was expected to cover 300,000ha, equal to 60 percent of the province's total area, including Tuy An and Dong Xuan districts, Song Cau town and Van Hoa plateau in Son Hoa mountainous district bordering Binh Dinh province.
The southern central province remains one of the country's 10 leading localities for foreign investment attraction. As of November 20, the province was home to 48 foreign-invested projects, worth a combined 8.13 billion USD.
Increasing efforts are being made by local authorities to create the most favourable conditions for investors, the chairman said.
To facilitate investment, Phu Yen has adopted numerous incentives for domestic and foreign investors such as corporate income tax exemption and land rental reduction.
Besides simplifying licensing procedures, provincial leaders also meet with investors once every six months to discuss difficulties in production and business.
Meanwhile, the province is encouraging domestic and foreign investors to invest in 24 key projects worth a combined 18.99 trillion VND (926.3 million USD).
This huge investment capital would contribute towards various sectors including transport, seaport, industrial zones and urban development, agriculture, seafood, processing and tourism./.
